Auto Finance

Auto Affordability Flat in Q1, Comerica Bank Says

DALLAS — The purchase and financing of an average-priced new vehicle took 23.2 weeks of median family income in the first quarter of 2011, unchanged from its fourth quarter 2010 level.

Consumers on average spent $400 more (an increase of two percent) on new cars in the first quarter. The average rates on car loans during the quarter increased to 4.7 percent, the highest average since the first quarter of 2009.

“The total cost of purchasing a new vehicle increased approximately $425 in the first quarter of 2011, as consumers opted for more expensive cars against a backdrop of rising rates,” said Dana Johnson, chief economist at Comerica Bank. “Looking ahead, affordability has the potential to erode as financing costs and consumer appetites for more expensive vehicles increase.”

Black Book’s final depreciation report of 2018 finds prices for used cars and trucks decreased by 2.7% and 2.3%, respectively, with declines among compacts, minivans, and full-size utilities setting the pace.

Santander Consumer USA has agreed to pay $9.29 million in restitution and $2.5 million in fines to settle claims leveled by the U.S. Consumer Financial Protection Bureau over the finance source’s GAP and interest-only payments programs.